#bank recovery proceedings

The Kerala High Court has ruled that banks must accept structured installment plans to avoid coercive asset recovery under the SARFAESI Act, provided the borrower demonstrates genuine repayment capacity. This sets a precedent for judicial intervention to balance financial enforcement with constitutional rights to livelihood and dignity, affecting thousands of individual borrowers facing bank seizures.

Madhya Pradesh High Court rules that ex-parte possession orders under SARFAESI Act violate natural justice if no notice is issued to borrowers. Petitioners must approach DRT within 10 days for relief, with DRT directed to expedite hearings despite vacancies. The ruling underscores that SARFAESI proceedings cannot bypass due process, even for secured creditors.

Andhra Pradesh High Court holds that failure to disclose borrower's post-notice payments in Section 14 SARFAESI affidavit vitiates possession proceedings. Key precedent for financial institutions.